WES MOORE, Governor Ch. 1026 – 1 – Chapter 1026 (House Bill 1052) AN ACT concerning Baltimore City – Alcoholic Beverages – 46th Alcoholic Beverages District – Revisions FOR the purpose of authorizing the Board of License Commissioners for Baltimore City to issue a certain number of new alcoholic beverages licenses within a certain bounded area; providing that, in the 46th alcoholic beverages district in Baltimore City, a certain license may be issued and an existing license may be moved to a building that is within a certain distance of a place of worship or school under certain circumstances; authorizing the Board of License Commissioners for Baltimore City to waive a certain requirement for a certain license holder that operates a restaurant to remain open after hours; extending for a certain amount of time the expiration of an certain alcoholic beverages license licenses for the purpose of a transfer; authorizing a certain license conversion conversions under certain circumstances; prohibiting the Board from authorizing a license for a certain recipient of a certain State grant under certain circumstances; and generally relating to alcoholic beverages licenses in the 46th alcoholic beverages district in Baltimore City. BY repealing and reenacting, without amendments, Article – Alcoholic Beverages and Cannabis Section 12–102 and 12–1604.1 Annotated Code of Maryland (2016 Volume and 2023 Supplement) BY repealing and reenacting, with amendments, Article – Alcoholic Beverages and Cannabis Section 12–1604(b), 12–1605(b), and 12–2007 Annotated Code of Maryland (2016 Volume and 2023 Supplement) BY adding to Article – Alcoholic Beverages and Cannabis Section 12–1604(j) Annotated Code of Maryland (2016 Volume and 2023 Supplement) SECTION 1. BE IT ENACTED BY THE GENERAL ASSEMBLY OF MARYLAND, That the Laws of Maryland read as follows: Article – Alcoholic Beverages and Cannabis 12–102. Ch. 1026 2024 LAWS OF MARYLAND – 2 – This title applies only in Baltimore City. 12–1604. (b) Except as provided in subsections (c), (d), [and] (i), AND (J) of this section, the Board may not issue a new license in the 46th alcoholic beverages district. (J) (1) IN THE AREA BOUNDED O N THE NORTH BY INTERSTATE 95, ON THE EAST BY THE SOUTH LOCUST POINT TERMINAL, AND ON THE SOUTH AND WEST BY THE PATAPSCO RIVER, THE BOARD MAY ISSUE NOT M ORE THAN: (I) A TOTAL OF 10 NEW CLASS B–D–7 LICENSES; AND (II) A TOTAL OF 2 NEW CLASS A–7 LICENSES. (2) ANY LICENSE ISSUED UNDER THIS SUBSECTION MAY NOT BE TRANSFERRED OUTSIDE THE BOUNDED AREA AS DEFINED UNDER PARAGR APH (1) OF THIS SUBSECTION . (3) THE BOARD MAY NOT AUTHORI ZE THE TRANSFER OF A LICENSE INTO THE BOUNDED ARE A AS DEFINED UNDER P ARAGRAPH (1) OF THIS SUBSECTION. 12–1604.1. (a) This section applies only to a license holder of a Class D beer and light wine license for use in the 46th alcoholic beverages district. (b) (1) A license holder who holds a valid Class D beer and light wine license may apply to the Board to convert the license to a Class D beer, wine, and liquor license if the license holder: (i) 1. maintains average daily receipts from the sale of food that are at least 51% of its total daily receipts; 2. executes a memorandum o f understanding with the relevant local neighborhood association as determined by the Board; 3. operates a location with not more than 75 seats; and 4. pays a special transfer fee of $15,000, in addition to any fees required under § 12–1704 of this title; or (ii) 1. holds a license that was originally issued by the Board under § 12–1604(i) of this subtitle; and WES MOORE, Governor Ch. 1026 – 3 – 2. pays a special transfer fee of $15,000, in addition to any fees required under § 12–1704 of this title. (2) If a Class D beer and light wine license is converted to a Class D beer, wine, and liquor license under paragraph (1) of this subsection, the Class D beer, wine, and liquor license: (i) may not be transferred to a new location; and (ii) is subject to the requirements of paragraph (1) of this subsection. (c) A holder of a license converted under this section may sell beer, wine, and liquor Monday through Sunday from 6 a.m. until 1 a.m. the following day. (d) An application to convert a Class D beer and light wine license under subsection (b)(1) of this section is a transfer subject to the provisions of § 12–1701 of this title. 12–1605. (b) (1) This subsection: (i) applies only in the 46th alcoholic beverages district; and (ii) does not apply to a licensed restaurant in: 1. ward 4, precinct 1; 2. ward 22, precinct 1; 3. a residential planned unit development for Silo Point as approved by the Mayor and City Council in Ordinance 04–697 on June 23, 2004; [or] 4. subject to paragraph (3) of this subsection, the area that is bounded as follows: from the intersection of West Ostend Street and Race Street, north on Race Street to Seldner Place, then east on Seldner Place to Clarkson Street, then north on Clarkson Street to West Cross Street, then east on West Cross Street to South Hanover Street, then north on South Hanover Street to Race Street (also known as Winter Street), then west/southwest on Race Street to West Cross Street, then west on West Cross Street to Leadenhall Street, then south on Leadenhall Street to West Ostend Street, then east on West Ostend Street back to the intersection of West Ostend Street and Race Street; 5. SUBJECT TO PARAGRAPH (4) OF THIS SUBSECTION , THE AREA THAT IS BOU NDED AS FOLLOWS : FROM THE INTERSECTI ON OF EASTERN AVENUE AND SOUTH HIGHLAND AVENUE, NORTH ON SOUTH HIGHLAND AVENUE Ch. 1026 2024 LAWS OF MARYLAND – 4 – TO BANK STREET, THEN WEST ON BANK STREET TO SOUTH CLINTON STREET, THEN SOUTH ON SOUTH CLINTON STREET TO EASTERN AVENUE, THEN EAST ON EASTERN AVENUE BACK TO THE IN TERSECTION OF EASTERN AVENUE AND SOUTH HIGHLAND AVENUE; OR 6. SUBJECT TO PARAGRAPH (5) OF THIS SUBSECTION , THE AREA THAT IS BOU NDED AS FOLLOWS : FROM THE INTERSECTIO N OF EASTERN AVENUE AND SOUTH NEWKIRK STREET, EAST ON EASTERN AVENUE TO OLDHAM STREET, THEN SOUTH ON OLDHAM STREET TO FLEET STREET, THEN WEST ON FLEET STREET TO SOUTH NEWKIRK STREET, THEN NORTH ON SOUTH NEWKIRK STREET BACK TO THE IN TERSECTION OF SOUTH NEWKIRK STREET AND EASTERN AVENUE. (2) The Board may not issue or approve the transfer of a license if the licensed premises would be: (i) within 300 feet of the nearest point of a place of worship or school; or (ii) closer to the nearest point of a place of worship or school than the licensed premises was on June 1, 2004. (3) For an establishment that is within 300 feet of the nearest point of a place of worship or school, the Board may issue a license in or approve the transfer of a license into the area specified in paragraph (1)(ii)4 of this subsection only if the Board: (i) has executed a memorandum of understanding with a community association in the area specified in paragraph (1)(ii)4 of this subsection regarding the nature of the establishment; and (ii) enforces the memorandum of understanding against any license holder that obtains a license under paragraph (1)(ii)4 of this subsection and seeks to renew or transfer the license. (4) FOR AN ESTABLISHMENT THAT IS WITHIN 300 FEET OF THE NEAREST POINT OF A P LACE OF WORSHIP OR S CHOOL, THE BOARD MAY ISSUE A LICENSE IN OR APPROV E THE TRANSFER OF A LICENSE INTO THE AREA SPECIF IED IN PARAGRAPH (1)(II)5 OF THIS SUBSECTION O NLY IF THE BOARD: (I) HAS EXECUTED A MEMOR ANDUM OF UNDERSTANDI NG WITH A COMMUNITY ASSOCIAT ION IN THE AREA SPEC IFIED IN PARAGRAPH (1)(II)5 OF THIS SUBSECTION REGA RDING THE NATURE OF THE ES TABLISHMENT ; AND WES MOORE, Governor Ch. 1026 – 5 – (II) ENFORCES THE MEMORAN DUM OF UNDERSTANDING AGAINST ANY LICENSE HOLDER THAT OBTAINS A LICENSE UNDER PARA GRAPH (1)(II)5 OF THIS SUBSECTION A ND SEEKS TO RENEW OR TRANSFER THE LICENSE . (5) FOR AN ESTABLISHMENT THAT IS WITHIN 300 FEET OF THE NEAREST POINT OF A P LACE OF WORSHIP OR S CHOOL, THE BOARD MAY ISSUE A LICENSE IN OR APPROV E THE TRANSFER OF A LICENSE INTO THE ARE A SPECIFIED IN PARAGRAPH (1)(II)6 OF THIS SUBSECTION O NLY IF THE LICENSE H OLDER HAS RECEIVED A LET TER OF SUPPORT FROM A PLACE OF WORSHIP O R SCHOOL THAT IS WITHIN THE BOUNDED A REA. 12–2007. (a) Except as provided in subsection (b) of this section, a licensed premises shall end all operations, including the serving of alcoholic beverages and food and providing entertainment, at the closing hour for that class of licensed premises specified in this title. (b) (1) The Board may grant an exemption for remaining open after hours to: (i) a holder of a Class B restaurant license, only for serving food to patrons seated for dining; (ii) a pharmacy that fills prescriptions; or (iii) a holder of a Class D beer, wine, and liquor license that operates a restaurant, if: 1. it is used only for serving food to patrons seated in a dining room that is not adjacent to a bar; and 2. the restaurant is located in the 46th Legislative District in the Legislative Districting Plan of 2022. (2) A pharmacy that receives an exemption under paragraph (1) of this subsection may also sell products other than alcohol after normal closing hours. (3) A hotel that holds a Class B license and that serves food to seated customers or for private functions or guest rooms may continue to provide food service. (4) THE BOARD MAY WAIVE THE R EQUIREMENT IN PARAGR APH (1)(III)1 OF THIS SUBSECTION T HAT A DINING ROOM NO T BE ADJACENT TO A B AR. SECTION 2. AND BE IT FURTHER ENACTED, That: (a) (1) Notwithstanding § 12–1705 of the Alcoholic Beverages and Cannabis Article, a Class B–D–7 license issued for a premises on the 2800 block of O’Donnell Street Ch. 1026 2024 LAWS OF MARYLAND – 6 – shall be considered unexpired until the end of July 1, 2024, for the purpose of completing a transfer of ownership at the same location. (b) (2) Notwithstanding § 12–1604.1 of the Alcoholic Beverages and Cannabis Article, a holder of a Class D beer and light wine license on the 3200 block of Eastern Avenue may apply to the Board to convert to a Class D beer, wine, and liquor license if the license holder meets each requirement in § 12–1604.1 except for the requirement to maintain average daily receipts from the sale of food that are at least 51% of the total daily receipts. (3) Notwithstanding § 12–2202 of the Alcoholic Beverages and Cannabis Article, a Class B–D–7 license issued for a premises in the 1600 block of Eastern Avenue shall be considered unexpired until the end of July 1, 2025, for the purpose of completing a transfer of ownership and transfer of location to a premises in the 600 block of South Caroline Street. (4) (i) Notwithstanding § 12–2202 of the Alcoholic Beverages and Cannabis Article, a Class B license issued for a premises in the 3500 block of Boston Street shall be considered unexpired until the end of July 1, 2025, for the purpose of completing a transfer of ownership and a transfer of location to a premises in the 3600 block of Boston Street. (ii) If a Class B license transferred to the 3600 block of Boston Street under subparagraph (i) of this paragraph was originally issued as a Class B–D–7 license, the license holder may apply to the Board to convert the Class B license back to a Class B–D–7 license. (5) Notwithstanding § 12–2202 of the Alcoholic Beverages and Cannabis Article, a Class B–D–7 license issued for a premises in the 600 block of South Luzerne Avenue shall be considered unexpired until the end of July 1, 2025, for the purpose of being renewed to the current license year by the licensee. (b) The Board may not authorize the transfer of a license in ward 24, precinct 5 to a person or a location that has received and retained funding awarded under a legislative bond initiative. SECTION 3. AND BE IT FURTHER ENACTED, That this Act shall take effect July 1, 2024. Section 2 of this Act shall remain effective for a period of 1 year and 1 month and, at the end of July 31, 2025, Section 2 of this Act, with no further action required by the General Assembly, shall be abrogated and of no further force and effect. Approved by the Governor, May 16, 2024.